Volvo Partners With Uber on Self-Driving Cars

Volvo Car Group has agreed to a $300 million alliance with Uber to develop self-driving cars, the latest move by traditional vehicle manufacturers to team up with Silicon Valley firms long seen as disruptive threats to their industry.

The partnership will see the Swedish-based carmaker, owned by China’s Geely, and ride-hailing service Uber pool resources into initially developing the autonomous driving capabilities of its flagship XC90 SUV. The investment will be roughly shared equally by the two companies.

Uber will purchase Volvos and then install its own driverless control system for the specific needs of its ride-hailing service.